Missouri Considers Higher Casino Fees and New Taxes

A Shift Toward Fee-Based Revenue

Missouri officials are exploring a major shift in how the state collects revenue. Lawmakers are reviewing House Bill 3533 — a proposal that may replace income tax income with higher gaming fees.

The bill targets the state’s 13 casinos and sports betting operations. It aims to update fees that have stayed unchanged since 1994. That long gap now raises concern among some lawmakers.

Rep. Jeff Knight introduced the bill as part of a broader fiscal debate. The idea appears simple — increase industry contributions as income tax declines. However, the path forward may not be smooth.

What the Bill Proposes

The proposal outlines several fee increases and new tax measures. These changes could significantly raise costs for casino operators across Missouri. Key measures include:

• Casino admission fee rising from $2 to $5.50

• Charging the fee every two hours instead of once

• Annual fee adjustments based on inflation

• A 13% tax on gambling revenue

• A 24% tax on sports betting revenue

• A 1.5% remote wagering access fee

The remote fee includes a clear funding plan — the first $35 million would support historic preservation efforts. Another $15 million may come from gaming-related funds for the same purpose.

Supporters Say Revenue Is Falling Short

Some lawmakers argue current gaming revenue no longer meets state needs. They say fees have not kept pace with inflation or market changes.

Rep. Barry Hovis noted the original $2 fee would be higher today with inflation. That gap — he suggested — shows the state may be missing potential income.

Industry Pushback Builds

Casino operators and business groups strongly oppose the proposed changes. They warn the combined costs could exceed $500 million for the industry.

Lobbyists argue the timing is risky — casinos already face pressure from other gaming options. Small slot machines in gas stations and stores continue to grow. That competition may already reduce casino income.

The two-hour admission fee also raises concern among operators. They say it could disrupt customer flow and daily operations. Beyond that, it may create confusion for users.

Legal and Market Questions Remain

Some critics question whether sports betting taxes can change through legislation alone. Sports wagering was approved through a constitutional vote — raising legal concerns.

Business groups also urge caution when targeting one sector for higher taxes. They argue sudden increases may push investment to other states. That risk — while uncertain — remains part of the debate.